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M.264 An Aid to Accountancy—CBSE XII

Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

(a) Bank A/c ...Dr. 40,000
To Debentures Application and Allotment A/c 40,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 40,000
Loss on Issue of Debentures A/c ...Dr. 4,000
To 9% Debentures A/c 40,000
To Premium on Redemption of Debentures A/c 4,000
(Being 400; 9% Debentures of ` 100 each issued at par redeemable at
10% premium)
(b) Bank A/c ...Dr. 85,500
To Debentures Application and Allotment A/c 85,500
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 85,500
Loss on Issue of Debentures A/c ...Dr. 13,500
To 9% Debentures A/c 90,000
To Premium on Redemption of Debentures A/c 9,000
(Being 900; 9% Debentures of ` 100 each issued at 5% discount
redeemable at 10% premium)
9.
Dr. SUBSCRIPTION ACCOUNT Cr.
Date Particulars ` Date Particulars `

2017 2017
March 31 To Outstanding Subscription A/c 10,800 March 31 By Advance Subscription A/c 6,000
2018 By Bank A/c 30,000
March 31 To Income and Expenditure A/c 23,400 2018
(39 × ` 600) March 31 By Outstanding Subscription A/c 5,400
March 31 To Advance Subscription A/c 7,200
(Balancing Figure)
41,400 41,400

Note: Subscription outstanding as on 31st March, 2018 includes the amount of subscription due as
on that date. It means, it also includes “Subscriptions still in arrears for the year 2016–17 ` 4,200”.
So, this information is given just to create confusion.

10. JOURNAL OF STRONG LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2018
March 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr. 9,65,000
To Debentures Redemption Reserve A/c (Note) 9,65,000
(Being the transfer of profit to Debentures Redemption Reserve as required
under Section 71(4) of the Companies Act, 2013 read with Rule 18(7))
April 30 Debentures Redemption Investment A/c ...Dr. 3,00,000
To Bank A/c 3,00,000
(Being the investment made of a sum equal to 15% of the nominal
value of debentures)